Third-Party Logistics Compliance Audits: How To Know Your 3PL Is Truly Playing By The Rules

Audits show what a warehouse looks like when no one is watching

When a brand signs with a 3PL, it is trusting that warehouse with products, customers, data, and compliance risk. Yet many founders do not know what a 3PL audit actually covers. A third-party logistics compliance audit is a deep look into the warehouse's training records, safety procedures, hazardous materials handling, environmental programs, inventory accuracy, and regulatory alignment. It is the closest thing to seeing the operation on a bad day before the bad day happens.

Compliance audits reflect rules from DOT's Hazardous Materials Regulations, OSHA standards in 29 CFR 1910, EPA waste regulations in 40 CFR Parts 260 through 273, and fire code requirements from NFPA and the International Fire Code. A strong 3PL welcomes audits because they show discipline, documentation, and operational maturity.

Why brands need more than tour-ready facilities

A warehouse can look clean and staged on a tour while hiding serious compliance gaps. Audits dig deeper. They examine forklift certifications, spill logs, waste manifests, emergency action plans, hazardous materials storage, training records, injury trends, WMS logic, and item master accuracy. When a 3PL knows an audit is coming, the entire operation becomes more self-aware.

Director of Operations and Projects Maureen Milligan speaks to the value of frontline insights. "Just because you happen to work in a warehouse does not mean that your idea is not valid." Audit programs that listen to employees catch problems faster because workers see issues long before management does.

Hazmat handling is always a focal point

Hazardous materials introduce more risk, more paperwork, and more regulatory consequences than nearly any other warehouse activity. Audits review classification controls, packaging, labeling, segregation, spill readiness, carrier authorization, and waste handling. If a warehouse stores flammables, corrosives, aerosols, batteries, or anything reactive, the audit scope expands.

Director of Vendor Operations Kay Hillmann sees the range of products that raise audit stakes. "We are certified in all hazardous materials. We were looking at a matches company, that is a hazardous material. We ship concrete sealant, that is hazardous, a different classification. Paint, your everyday paint you get from a home center, that is hazardous material. Flammables, like gas power generators, that is hazardous material. Perfumes, alcohol." Each type requires matching training, documentation, and storage controls.

Training records reveal the warehouse's true discipline

DOT hazmat employee training requirements in 49 CFR 172.700 through 172.704, OSHA safety training, and EPA hazardous waste training all leave paper trails. An audit looks for complete records, recurring refreshers, and evidence that employees actually understand the rules rather than signing attendance sheets. Missing or inconsistent training is one of the fastest ways to fail.

Kay describes the strength of G10s program. "We have been certified by the expert in the country on hazardous materials in all classifications." Auditors want to see training that builds real competency rather than checking boxes.

Inventory accuracy is a compliance metric

Inventory errors are not just operational issues. They can become compliance problems when they affect hazardous materials storage limits, sprinkler design assumptions, or waste classifications. A warehouse that does not know where its regulated goods sit cannot demonstrate compliance.

CTO and COO Bryan Wright explains the system foundation. "A bad WMS system will not track inventory 100 percent, as it should. A good WMS tracks inventory through the warehouse at every point that you touch it." Audits examine whether the WMS supports compliance or leaves too much room for human error.

Safety, housekeeping, and emergency readiness

Auditors study OSHA expectations for walking and working surfaces, forklift operations, hazard communication, emergency exits, and PPE. They check whether aisles stay clear, hazardous materials are segregated, and emergency equipment works. They look for near misses and evaluate whether incidents are investigated or ignored.

Director of Operations Holly Woods highlights the planning behind safe operations. "We have very intensive planning as we get close to a peak timeframe. We run forecast models, staffing models, and we audit inventory, equipment. All of these preparations happen ahead of season just to ensure that we can handle anything that comes our way." Good audits verify that those preparations exist in writing and in practice.

Environmental responsibilities reveal long term maturity

Warehouses that handle liquids, batteries, cleaners, or chemicals generate waste streams that fall under EPA rules. Audits review labeling, accumulation practices, spill procedures, manifests, storage locations, and vendor qualifications. A single leaking pallet of corrosive material can create violations that take years to unwind.

Carrier compliance and shipping authorization

Auditors review whether the warehouse complies with carrier specific hazmat rules, service prohibitions, and authorization requirements. That includes air restrictions, ground only limitations, and carrier preferences for certain battery types or aerosols. A 3PL that does not encode these rules into systems will fail an audit the moment a shipment enters the wrong network.

Questions founders should ask about compliance audits

When you evaluate a 3PL, ask how often they undergo internal and external compliance audits. Ask what auditors typically find and how those findings get resolved. Ask whether audit reports are available for review. Strong operations do not hide their results.

Turning audits into a competitive advantage

Compliance audits are less about passing and more about proving that a 3PL runs a disciplined operation. Clean records, strong training, accurate systems, and organized facilities reduce incidents, claims, and downtime. They also give brands confidence that their products will ship safely and compliantly.

Kay sums up the mindset. "We follow regulations and guidelines to a T because we want to make sure that we are doing it legally, correctly, and safely." Applied to audits, that mindset becomes a long term operational advantage.

If you want a logistics partner whose compliance programs stand up to hard questions, talk with G10 about how rigorous audit processes support safer, smarter growth.